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• BUYER'S GUIDE

• SELLER'S GUIDE

BUYER'S GUIDE

Now is the time to find and purchase a home that will meet your needs for years to come. This can be exciting, yet stressful at the same time. I strive to help you through these transitions and ensure that things go as smoothly as possible. Some important things to ask yourself when considering a new home:

• Where do I want to live? Do I want/need to be close to schools, shopping or work?
• What kind of features do I want in my new home? Am I looking for a particular style? How many bedrooms and bathrooms do I need?
• What can I afford? Have I consulted with a Realtor or mortgage lender to determine the amount of mortgage I qualify for?

Getting organized is very helpful in the home buying process. Here are a few tips:

• Obtain your credit report and make sure the information is accurate. If there are any errors, get them corrected immediately. The accuracy of your credit is one of the factors that determine your mortgage approval.
• There are plenty of real estate advertisements in the local newspaper. These will give you an idea of the types of homes that are on the market and what they cost. Use my quick property search and featured properties buttons. They will give you a feel for the market from the comfort of your own home.
• Get a list of open houses and visit them on their respective dates. There’s absolutely no cost to look, and viewing different homes may give you an idea as to what you’re looking for but haven't considered.
• Start Saving. You'll need to have extra cash on hand for a down payment and closing costs.
• Don’t acquire any more debt than you may currently have. Pay down your credit cards and don't apply for any new ones. Try not to make any major purchases on credit. You can always buy the furniture or that new car later.

Contact Me I can help you determine how much you can afford and can provide you with additional information on homes that may interest you. I will also help you complete all of the necessary forms when it comes time to make an offer.

How much house can I afford?

First, you need to determine the monthly amount you feel you can pay comfortably. What a lender thinks you can qualify for can be higher or lower than that and you need to feel it is a payment you can affprd.

A Lender will qualify a borrower based on three factors: Credit, Income and Assets.

Income: A household (could be more than one borrower) should spend no more than 28% to 33% of its before-tax income (gross income) on household expenses.

Household expenses include mortgage principal and interest, hazard insurance, real estate taxes, and mortgage insurance. At the same time housing expenses and other long-term debts combined generally should not be more than 36% to 41% of gross income.

Long-term debt includes car loans, credit card payments, student loans or medical bills. The stability of the income also plays a role.

Credit History: Lenders look into how a borrower has handled debt repayment in the past. A credit score is usually used to indicate the likelihood of you making payments on time. A higher score indicates a borrower is more likely to make payments on time.

Assets: Some loan products require a down-payment. Borrowers are asked to verify their assets to fulfill that requirement. Larger cash assets also show a borrower’s ability to save.

Qualification guidelines are flexible and will vary depending on the loan program that suits your needs. If one of these factors looks weak but the other two are strong, exceptions can be made. For example, if a borrower credit score is lower than the minimum required, but has good and stable income and substantial assets, than an exception can be made to accept the lower credit score.

Pre-qualifying for a loan

The first step in buying a home is pre-qualification for financing. Pre-qualification is not a full mortgage approval, but a basic estimate of what you can afford in a home loan. Along with the down payment available to you, the loan amount will determine what price range will work for you. Pre-qualification is sometimes confused with pre-approval, which is a more comprehensive analysis and commitment of a loan program for a buyer. Pre-qualifying helps you identify and resolve any issues you may encounter in your application.

Understanding Mortgages

Most home purchases today are made with bank financing. A mortgage is the loan a homebuyer needs in order to make up the difference between the down payment and the purchase price of the home. This mortgage loan will be paid back in monthly payments. In addition to the mortgage payment your housing expense will also include real estate taxes, hazard and mortgage insurance.

There are a variety of mortgage programs available, with fixed and adjustable rates, different time periods and payment options. A Mortgage Consultant can help you determine which program better suits your needs. Most loans will require a buyer to provide verification of income, assets, and long-term debt. It usually takes about 30 days to process a loan application.

Buying power: I will help you connect with available lenders who are best qualified to help you. Those lenders will show you all of the options available and help you decide what is best for you.

Resources: To find the best home for your needs, I have access to homes through Multiple Listing Services, Internet resources and homes that may not be actively advertised on the market. I have the investigating skills to find all available properties. I love working hard for my clients.

Objective Information: The home buying process is an emotional one. I an assist by providing objective information about the local community, schools, recreational facilities, etc. This will help you answer two important questions: Does this property meet all of my current needs in a home? Will this property give me a return on my investment when I am ready to sell?

Negotiation: There are a myriad of negotiating factors, including but not limited to price, financing, terms, possession, inclusion or exclusions of repairs, furnishing, etc. I can properly write the purchase agreement to answer all of these questions and to provide you sufficient time to investigate and inspect the property.

Due diligence: I will assist you through the entire escrow period in the scheduling of inspections including a general home inspection, termite inspection or specialty inspections like geological, asbestos, mold, roof, septic tank, etc. I will advise you on how to understand and respond to inspections and the best way to phrase your repair requests. I will also help you interpret the various disclosures provided by the Seller such as the Transfer Disclosure, Natural Hazards Disclosure, Title Report and more.

Closing: This final stage of the home buying process may have many last minute situations that need to be dealt with in a timely manner. I will help keep things flowing smoothly until all the papers are signed and the keys are in your hands.

Follow-up: I will continue to follow-up with you after the closing to ensure that all your questions have been answered and to assist you with any needs in regards to your new home purchase.